Fed Policy Reversal Now Imminent

As rates around the world collapse, capital is rushing into the US bond market. As US rates fall, the yield curve inverts. As the yield curve inverts, the US economy begins to contract. As the US economy contracts, inflation disappears and rates fall even further. And, in the end, The Fed is forced to reverse policy, cut rates and re-install QE and other “stimulus” programs

As the tide recedes and the central bankers are exposed, the ultimate ineffectiveness of their lies and schemes will be revealed to all. Renewed rate cuts, unlimited quantitative easing and enforced capital controls with negative interest rates are coming in the months ahead.

The charts below are what you must consider again today as we conclude this update. In 2010, you could have been 100% correct about where precious metal prices were headed by year end…but you could have easily been shaken out by the malaise that lasted until July. It was only when the situation became obvious for all to see that precious metal prices began to explode higher and the back half of 2010 saw gold move from $1160 to $1420 while silver rallied from $18 to $30.

And now here we are in 2019. Just as in 2010, prices have moved sideways for the first five months of the year and only just now is the investment world coming to terms with where this is all headed. The US economy is demonstrably slowing, the US$ is rolling over, the yield curve is inverting, the Fed is reversing and the precious metals are beginning their move.